Cable and EUR/USD under pressure
The US bond curve continues to steepen and that's leading to another round of risk aversion. The S&P 500 took a quick dip to 3367 but it's rebounded to 3373.
The dollar, however, is holding its bid. EUR/USD has now pared gains to just 12 pips to 1.1801 after rising as high as 1.1864 in early US trade. Similarly, cable has pared 70 pips of gains and is at 1.3056.
The trigger for the dollar bid was a surprisingly weak bond auction. Since then, US yields have steadily crept higher led by the long end. US 30s are now up 5.5 bps to 1.428%.
EUR/USD:
